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Title Impact Fees and Single Family Home Construction
Highlights
                     
Fees and Dedications X There is implicit recognition that impact fees may discourage affordable housing development.
  Check This article states that the implementation of fees can increase approvals for projects and can reduce community resistance for projects.
Description This paper by Gregory Burge and Keith Ihlanfeldt analyzes the effects of impact fees on single-family housing development. The paper states that roughly a quarter of local governments currently utilize impact fees to help develop public infrastructure that services new development. Developers argue the fees are not equitable, since fees for smaller homes are similar to that of larger homes. Burge and Ihlanfeldt used housing development models of different house sizes in Florida to determine the effect of impact fees.

According to Burge and Ihlanfeldt, the results of the study show that impact fees may increase construction in inner suburban areas because they facilitate more infrastructure development and construction. Overall, the paper notes that the amount of fees may affect the approval of projects by local officials. Higher fees are easier for local officials to support politically and receive less community resistance, even in areas with a tendency to be exclusionary. The paper states that fee levels must be carefully formulated to not impede development, but still be efficient in providing public infrastructure. The paper also states that areas with fees will have more services for homebuyers and are expected to reduce property tax liabilities, and the result is a higher housing demand in those areas.

Publication Date 2006
Organization Journal of Urban Economics
Web Locationhttp://www.fsu.edu/~localgov/publication_files/Burge_Ihlanfeldt_single.pdf

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Notice: The contents of this record reflect the views of the author and/or promulgating municipality, and should not be construed as representing the views or policies of the U.S. Department of Housing and Urban Development or U.S. HUD's Office of Policy Development and Research. No attempt has been made by U.S. HUD or its contractors to verify the accuracy, currency, or validity of the record contents presented herein.

          

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